EUTrade in Financial Services withASEAN, Policy Coherence for Development and Financial Crisis

In: Journal of common market studies: JCMS, Band 52, Heft 6, S. 1324-1341

Abstract

AbstractIn the wake of the financial crisis, negotiating free trade agreements (FTAs) withSoutheastAsia has become a priority for theEuropeanUnion (EU). Paradoxically, all the indications are that theEUwill demand thatIndonesia,Malaysia, thePhilippines andThailand liberalize financial services trade with theEU. This article asks whether theEU's policy undermines coherence betweenEUtrade and development policies. It argues that theEUandAssociation ofSoutheastAsianNations (ASEAN) agree that financial services are crucial for development, but that they differ on the approach to liberalization: theEUadvocates broad‐ranging liberalization, whereasASEANcountries favour a cautious approach, conditioned by their experience of theAsian financial crisis. In view of this divergence, theEUwill have to rethink its approach to financial services trade liberalization in negotiations withASEANcountries.